Ahead of Market: 12 things that will decide stock action on Monday

NEW DELHI: The Nifty 50 index staged a rebound on Friday after a hiccup within the earlier session and shaped a bullish candle on the each day chart with a protracted decrease shadow.

“The rally in the domestic market was led by positive cues from global peers, strong buying in metal stocks and recovery in the banking sector. Metal stocks outshone other sectoral indices on reports of a possible price hike. PSU banks were also in focus today as the government announced capital infusion of Rs 14,500 crore in four PSU banks,” stated Vinod Nair, Head of Research at Geojit Financial Services.

On the weekly scale, the headline index shaped a big bullish candle for the truncated, three-session week passed by.

Chandan Taparia, Technical and Derivative Analyst at MOFSL, stated, “Now, the Nifty has to hold above the 14,800 level to make a bounce towards 15,000 and 15,100 levels, while on the downside, support exists at 14,700 and 14,600 levels.”

That stated right here’s a have a look at what some of the important thing indicators are suggesting for Monday’s action:

US shares

On Wall Street, the S&P 500 scaled 4,000 for the primary time on Thursday and closed up 1.18 per cent at 4,019.87. With that, benchmark index took its acquire from March 2020 lows to just about 80 per cent. The Dow Jones Industrial Average climbed up 171.66 factors or 0.52 per cent to finish at 33,153.21, and the know-how stocks-heavy Nasdaq Composite surged 233.23 factors or 1.76 per cent to 13,480.10. The rally has been pushed by unprecedented US stimulus measures and expectations that widespread vaccinations in opposition to COVID-19 will spur an financial rebound.

European shares

European equities moved larger on Thursday, as sturdy manufacturing facility exercise information out of the euro zone eclipsed considerations about one other lockdown in France. The pan-European STOXX 600 index rose 0.61 per cent. The benchmark had completed the primary quarter with a 7.7 per cent rise – its fourth straight quarter of good points. The German DAX climbed 0.66 per cent, whereas the UK’s FTSE 100 gained 0.35 per cent.

Tech View

Chandan Taparia of Motilal Oswal Securities stated Thursday’s bullish candle was wholesome. He stated the index has shaped larger lows in final two periods and managed to carry above the 50-day exponential shifting common (EMA). “The index must maintain holding above 14,750 degree to witness a bounce in the direction of 15,000 and 15,100 ranges. On the draw back, assist exists at 14,600 and 14,500 ranges,” Taparia stated.

Check out the candlestick formations within the newest buying and selling periods



Fear gauge India VIX fell 3.16 per cent from 20.64 to 19.98. The VIX wants to chill down beneath 20 for the bullish grip to proceed and the market transfer to develop into smoother. On the choices entrance, the utmost Put Open Interest was seen at 14,000, adopted by 14,500, whereas the utmost Call OI was seen at 15,000, adopted by 16,000. There was Call writing at strike costs 15,000 and 15,100, and Put writing at 14,500 and 14,200. Options information recommended a wider buying and selling vary between 14,500 and 15,200.

Stocks exhibiting bullish bias

Momentum indicator Moving Average Convergence Divergence (MACD) on Thursday confirmed a bullish commerce setup on the counters of JSW Energy, Firstsource Solution, UPL, Sun Pharma, India Cements, NHPC, MOIL, ICICI Prudential, Bharat Forge, Sun TV Network, Minda Corporation, AstraZeneca Pharma, L&T Technology Services, Bajaj Finserv, NCL Industries, Sundaram Fasteners, Cochin Shipyard, ABB Power Products and Sundaram Brake Lining.

Stocks signalling weak point forward

The MACD confirmed bearish indicators on Ajanta Pharma, Venus Remedies, Control Print, Ebixcash World Money, Lakshmi Finance and NK Industries.

Thursday’s most lively shares

Tata Steel (Rs 3,102.99 crore), HDFC Bank (Rs 2,647.47 crore), JSW Steel (Rs 1,777.38 crore), Adani Enterprises (Rs 1,375.62 crore), TCS (Rs 1,361.97 crore), Tata Motors (Rs 1,350.34 crore), SBI (Rs 1,170.34 crore), Bajaj Finance (Rs 1,119.96 crore), RIL (Rs 1,091.74 crore) and Adani Ports SEZ (Rs 1,089.76 crore) had been among the many most lively shares on Dalal Street on Thursday in worth phrases.

Thursday’s most lively shares in quantity phrases

Vodafone Idea (shares traded: 24.92 crore), PNB (10.00 crore), YES Bank (9.32 crore), SAIL (8.76 crore), JP Power (6.02 crore), BHEL (5.30 crore), IDFC First Bank (5.00 crore), Tata Motors (4.41 crore), Adani Power (4.35 crore) and NALCO (4.12 crore) had been among the many most traded shares within the session.

Stocks exhibiting shopping for curiosity

Atul Ltd, Ambuja Cements, Coforge, Cummins India, 3M India, Adani Gas, Happiest Minds, Adani Transmission, Graphite India and JSW Steel witnessed sturdy shopping for curiosity from market individuals as they scaled their contemporary 52-week highs on Thursday, signalling a bullish sentiment.

Stocks seeing promoting strain

Future Retail, Future Lifestyle Fashions, Future Supply Chain Solutions, Global Education, AKG Exim, Ortin Laboratories, Ravinder Heights, Suvidhaa Infoserve and Sanginita Chemical witnessed sturdy promoting strain in Thursday’s session and hit their 52-week lows, signalling bearish sentiment on these counters.

Sentiment gauge favours bulls

Overall, market breadth remained in favour of bulls. As many as 392 shares on the BSE 500 index settled the day in inexperienced, and 103 within the pink.

Podcast: Will Sebi’s new spoofing rule shield retail merchants?

In the previous few days, market regulator Sebi has introduced a sequence of enhanced measures regarding share delisting, itemizing of startups and sure disclosure norms. One of an important modifications that will affect retail merchants essentially the most is one associated to checks on spoofing. To misguide different market individuals, spoofers use algo buying and selling to position bulk orders, however cancel them on the final second in what is named spoofing in market parlance.

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